ON Semiconductor Corp. has agreed to buy image sensor maker Aptina Imaging Corp. for about $400 million in cash, the company announced Monday (June 9).
ON Semi (Phoenix) said the acquisition would expand its image sensor business, particularly in the automotive and industrial sectors. The company described the automotive and industrial markets as key areas of strategic focus.
Aptina was established as the image sensor subsidiary of Micron Technology Inc. in 2008. A year later, Micron spun Aptina out as a private company.
Aptina held approximately 6 percent of the $3.12 billion image sensor market in 2013, according to the IHS Image Sensor Market Tracker. The market is comprised of both CMOS image sensors and charge-coupled devices.
Keith Jackson, president and CEO of ON Semi, said through a statement that the acquisition would enable ON Semi to accelerate its growth in the automotive and industrial end markets.
"The addition of Aptina vastly expands our scale and capabilities in image sensors and establishes us as a leader in image sensors for industrial and automotive related applications," Jackson said. "I am excited about the possibilities that this transaction presents for both companies."
Under the terms of the agreement, ON Semi will pay approximately $400 million in cash to acquire Aptina Imaging, subject to customary adjustments at closing, the company said. The acquisition will be funded by available cash on ON Semi's balance sheet and its existing revolver credit facility, the company said.